THE high-flying son of an Australian Australian Taxation Office boss was yesterday arrested over his alleged role in a fraud syndicate that police claim stole more than $165 million — one of the biggest white-collar crimes in Australia’s history.

The Daily Telegraph can reveal Australian Federal Police yesterday arrested Adam Cranston at his Bondi flat in one of 27 raids on homes and businesses across Sydney.

Adam Cranston, son of ATO boss Michael Cranston, is arrested at his Bondi flat yesterday over his role a $165 million fraud syndicate. Picture: Police MediaCranston was charged last night with conspiracy to ­defraud the commonwealth and is expected to face Central Local Court today.

The 30-year-old Cranston is the son of ATO deputy commissioner Michael Cranston, but there is no suggestion Michael Cranston had any involvement in or ­knowledge of the criminal syndicate.

Sources close to the investigation claim Adam was a “co-conspirator” in a group that used an elaborate tax scam to fund a celebrity lifestyle that included prime Sydney real estate, boats — and even a racing car team.

“This investigation has ­uncovered high-level organised activity; it is complex (and) sophisticated,” the source last night told The Daily Telegraph.

“I think it will take the police a long time to figure out exactly how much money (is involved).”

It is believed police will ­allege the fraud is one of the largest ever seen in Australia.

Investigators allege Sydney financial services firm SYNEP, of which Adam is co-chairman and managing ­director, was part of the ­operation.

There is no suggestion ATO Deputy Commissioner Michael Cranston had any involvement in the alleged scam.

Adam Cranston is escorted from the scene at Bondi yesterday. Picture: Police Media.Payroll contractor Plutus Payroll, controlled by SYNEP, was the centrepiece of the ­alleged hustle.

Police will claim it would allegedly funnel wage payments through a series of “second tier” companies. who then paid the ATO only a fraction of the required income tax.

The remaining withheld tax would then allegedly flow into the pockets of syndicate operators.

The scammers believed they had struck a sweet spot where each individual fraud was too small to prompt ­action from the ATO.

One source said it was “like saying to your schoolteacher, ‘I’ve done most of my homework, I’ll bring the rest next week’.”

The net tightened when both the AFP and ATO ­noticed alleged discrepancies in parallel investigations.

Re: ouch! this would hurt Taxmans son in Tax fraud.Reply #1 - May 18th, 2017 at 2:25pm

MICHAEL Cranston, the deputy commissioner of the Australia Taxation office, has been charged with abusing his position as a public official.

It comes after The Daily Telegraph today revealed Cranston’s son, Adam, was charged over his alleged role in a fraud syndicate that police claim stole more than $165 million — one of the biggest white-collar crimes in Australia’s history.

Australia Taxation Office deputy commissioner Michael Cranston (pictured today) has been issued a court attendance notice for abusing his position as a public official. Picture: Jenny EvansAustralian Federal Police yesterday arrested Adam Cranston at his Bondi flat in one of 27 raids on homes and businesses across Sydney.

He was charged last night with conspiracy to ­defraud the Commonwealth and faced Central Local Court today.

Adam Cranston, Daniel Rostankovski and Chris Guillan were granted bail under strict conditions, including that they surrender passports and not contact the alleged directors of the so-called second-tier companies that enabled the alleged fraud.

Mr Cranston was charged with conspiracy offences, with a total bail of $300,000, while his co-accused Rostankovski was also charged with blackmail, with a $100,000 bail.

Their fellow accused Daniel Hausman will finalise his bail application after lunch and another accused, Jason Onley, is expected to appear in court later today.

Adam’s younger sister Lauren Cranston was also arrested with the 24-year-old given the same charge as her brother when she was arrested in Picton, southwest of Sydney yesterday. She was granted conditional bail to face court on June 13.

So far, six people have been charged with conspiracy to defraud the Commonwealth, two with money laundering and another with extortion.

not sure why everyone feels that dragging Michael Cranston into this has any relevance. As far as I'm aware his dad had nothing to do with it. The son is an adult and responsible for his own actions.

typical media sensationalism

WHERE in the **** did the father think all of this money was coming from considering they both worked for the same company wiht the father being at the helm???

ya ******* idiot...

his work? He ran a company that did some bullsh1t job and made good money ... you think he gave his father enough specifics about every aspect of what the company did so that the father could make some informed decision?

I know my father has no idea where my money comes from. He knows what industry I'm in, but he couldn't tell you exactly what I do. He knows I've never needed to borrow money off him and he knows my house has been paid off, but apart from that he has no idea of exactly how much money I make. As far as he is concerned as long as I'm happy and not in any trouble, it's irrelevant to him and he doesn't want to know.

you still seeking daddys approval that you need to tell him all the details?

REPORTER: The condition of the budget will not be an excuse for breaking promises?

TONY ABBOTT: Exactly right. We will keep the commitments that we make.

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Re: ouch! this would hurt Taxmans son in Tax fraud.Reply #19 - May 19th, 2017 at 4:26pm

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

My money is on daddy being either involved or in charge,

After all, who would know better how to rort the tax office?

They should confiscate all property from boy and daddy.Clean out their bank accounts and sack them with no penson or super.Thats how proceeds of crime legislation is supposed to work aint it?

But what will happen will beDaddy found falt free and in a few months will retire on his wonderful six figure pension.Boyo will do a plea deal and "maybe" serve a few months or years before appeal.Us, the public, will be fed bull shite and expected to wear it.

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

if your son had a company and he told you he'd scored some multi million dollar contracts would you be suspicious of the bling? ?

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

if your son had a company and he told you he'd scored some multi million dollar contracts would you be suspicious of the bling? ?

Yes. He knows nothing about 'companys' and therefore would have told me about it before he even ventured into it.

not sure why everyone feels that dragging Michael Cranston into this has any relevance. As far as I'm aware his dad had nothing to do with it. The son is an adult and responsible for his own actions.

typical media sensationalism

WHERE in the **** did the father think all of this money was coming from considering they both worked for the same company wiht the father being at the helm???

ya ******* idiot...

his work? He ran a company that did some bullsh1t job and made good money ... you think he gave his father enough specifics about every aspect of what the company did so that the father could make some informed decision?

I know my father has no idea where my money comes from. He knows what industry I'm in, but he couldn't tell you exactly what I do. He knows I've never needed to borrow money off him and he knows my house has been paid off, but apart from that he has no idea of exactly how much money I make. As far as he is concerned as long as I'm happy and not in any trouble, it's irrelevant to him and he doesn't want to know.

you still seeking daddys approval that you need to tell him all the details?

When you work for the same organisation & know that questions will be asked ...

as they are ..

then yes ... father should know ... aka father knows best.

If father has no responsibility in the matter then why has he been charged?

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

if your son had a company and he told you he'd scored some multi million dollar contracts would you be suspicious of the bling? ?

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

if your son had a company and he told you he'd scored some multi million dollar contracts would you be suspicious of the bling? ?

They were ATO contracts... so again yes.

were they? I must have missed that bit. Can you show where you got that?

There is a serious difference between Daddy's approval and Daddy seeing all the bling in the life of his Son. My Son is very well paid....very, very well paid, as is his Wife......but they cannot fund a Racing Team, for example.

Daddy Cranston must have been at least curious.

if your son had a company and he told you he'd scored some multi million dollar contracts would you be suspicious of the bling? ?

Yes. He knows nothing about 'companys' and therefore would have told me about it before he even ventured into it.

And if your son knew about companies and told you he scored some multi million dollar contracts, would you still be suspicious?

this didn't just happen in one week you know. This has been going on for ages. Your son might not have a clue about companies but I think it's safe to assume this guy did, or else he wouldn't have got away with it for so long.

not sure why everyone feels that dragging Michael Cranston into this has any relevance. As far as I'm aware his dad had nothing to do with it. The son is an adult and responsible for his own actions.

typical media sensationalism

WHERE in the **** did the father think all of this money was coming from considering they both worked for the same company wiht the father being at the helm???

ya ******* idiot...

his work? He ran a company that did some bullsh1t job and made good money ... you think he gave his father enough specifics about every aspect of what the company did so that the father could make some informed decision?

I know my father has no idea where my money comes from. He knows what industry I'm in, but he couldn't tell you exactly what I do. He knows I've never needed to borrow money off him and he knows my house has been paid off, but apart from that he has no idea of exactly how much money I make. As far as he is concerned as long as I'm happy and not in any trouble, it's irrelevant to him and he doesn't want to know.

you still seeking daddys approval that you need to tell him all the details?

When you work for the same organisation & know that questions will be asked ...

as they are ..

then yes ... father should know ... aka father knows best.

If father has no responsibility in the matter then why has he been charged?

I hadn't realised son worked for the ATO ... I haven't read up on this story since it broke.

not as far as I'm aware, but like I said earlier, apart from reading about it when it the story first broke, I haven't kept up with the details.

Well, the allegation seems to be that Daddy was asked by Son if there was an ATO audit on a Company....and Daddy told him.

That's the least of it. I reckon Daddy is up to his eyeballs.

ahh ... that's what you were on about. I wasn't aware of it

Maybe his dad understood that EVERYONE worries about audits. They're time consuming, they're a royal pain in the arse and even if you've done nothing wrong you always have the 'what if I made a mistake' question hanging in the back of your mind.

not as far as I'm aware, but like I said earlier, apart from reading about it when it the story first broke, I haven't kept up with the details.

Well, the allegation seems to be that Daddy was asked by Son if there was an ATO audit on a Company....and Daddy told him.

That's the least of it. I reckon Daddy is up to his eyeballs.

ahh ... that's what you were on about. I wasn't aware of it

Maybe his dad understood that EVERYONE worries about audits. They're time consuming, they're a royal pain in the arse and even if you've done nothing wrong you always have the 'what if I made a mistake' question hanging in the back of your mind.

Okay....but Daddy is supposed to keep his mouth shut on those things.......no matter who asks.

And Indian women aren't exactly LBFMs. ~ A MemberA Member ~ kill every man woman and child, who is a Muslim.A Member ~ I know if he had touched my kid he [taxi driver]would need an Ambulance

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Re: ouch! this would hurt Taxmans son in Tax fraud.Reply #47 - May 19th, 2017 at 10:02pm

Apparently they were contracted to handle public service payroll - now that's a ridiculous idea to hand such a job out to a profit-making venture when it can more easily and more control be exercised in-house.

This just goes to show how far this 'out-sourcing' and 'privatisation' is purely for the enrichment of self and families of a group of insiders - in any other nation there would be public trials and public hangings... or at least revolution ... here in Oz we sleep on unalerted to the vipers in our midst and in the midst of our government.

Word for today:-

'priviatisation' - the process of turning a valid and well-functioning concept into a sh1t-house...

Okay....but Daddy is supposed to keep his mouth shut on those things.......no matter who asks.

ohh please ... like you wouldn't tell your kids if you were in his position.

Ah....and the penny finally drops. What else did he do for his kids given his position?

there are some things I'd do for my kids Aussies, but there are also limits on what I'd do. I would never assist any of my boys in scamming millions of dollars fraudulently. In fact, I'd probably report them.

not sure why everyone feels that dragging Michael Cranston into this has any relevance. As far as I'm aware his dad had nothing to do with it. The son is an adult and responsible for his own actions.

typical media sensationalism

WHERE in the **** did the father think all of this money was coming from considering they both worked for the same company wiht the father being at the helm???

ya ******* idiot...

his work? He ran a company that did some bullsh1t job and made good money ... you think he gave his father enough specifics about every aspect of what the company did so that the father could make some informed decision?

I know my father has no idea where my money comes from. He knows what industry I'm in, but he couldn't tell you exactly what I do. He knows I've never needed to borrow money off him and he knows my house has been paid off, but apart from that he has no idea of exactly how much money I make. As far as he is concerned as long as I'm happy and not in any trouble, it's irrelevant to him and he doesn't want to know.

you still seeking daddys approval that you need to tell him all the details?

Surely Daddy should have been suspicious of the over lavish lifestyle & expenditure?

I thought I read they weren't paying income tax to the ATO.... could be payroll tax....

thats right maybe they were disappearing employees isnt that how payroll tax works.. by how many work for the business....

it all seems really weird but the son knew he was being audited and thats what got daddy involved....daddy would have know what it meant by and audit.... .. meaning they were suspicious.. meaning his boy was doing something not quite lawful.

Re: ouch! this would hurt Taxmans son in Tax fraud.Reply #61 - May 21st, 2017 at 6:39pm

I finally read an Article today which explained it simply.

There is a Company called 'Rip Off.' The Owners of this Company included Daddy's Son.

There are other Companies, but I'll keep it simple and refer to just one ~ called "Rip Off Big Time," also owned by people including Daddy's Son with muppet Directors......dumbnut people recruited to do a simple job.

So.....Rip Off gets contracts with large organisations and does a deal with them which is.....'You give us the money, and we will do all the administration associated with paying your employees and handing to the ATO the associated PAYG tax payments.'

So, organisations hand over the money to them.

Rip Off pays the employee's entitlements, including the super, so all is well there.....employees getting what they ought.

Rip Off then hands over to Rip Off Big Time what ought be the PAYG tax component of those wages to pass onto to the ATO. Rip Off Big Time hands over to the ATO what Rip Off gave them.

Here is the kicker. Rip Off DID not give Rip Off Big Time ALL of the PAYG due to go to the ATO.

They kept some and bought the bling with it.

It was always going to come to grief as I do not yet understand how the employees of those organisations reacted when they did not get the Tax Assessment they expected from the ATO, given they would have seen their PAYG withheld from their 'pay envelope' and likely got a Bill from the ATO.